Chapter 12:

RETIREMENT OF COAL-FIRED POWER PLANTS, AND ASSOCIATED COAL MINE AND SUPPLY CHAIN CLOSURES

Improving Decision-Making for the Energy Transition: Guidance for Using Strategic Environmental Assessment

Chapter 12 focuses on the retirement of coal-fired power plants (CFPPs) and the closure of associated coal mines and supply chains. Shutting down coal-fired power plants and closing coal mines is a big but important step in moving to cleaner energy.

This chapter discusses how Strategic Environmental Assessment (SEA) is critical in guiding decision-making for the early retirement of these facilities, as it helps identify and manage the environmental and socio-economic risks, as well as the cumulative impacts of multiple closures. The chapter highlights the complexities of closing coal facilities, particularly in regions heavily dependent on coal, and stresses the need for a transition plan that addresses job losses, economic impacts, a just transition and opportunities for redevelopment.

  • 12.1 WHY IS SEA IMPORTANT TO COAL-FIRED POWER PLANT RETIREMENT AND COAL MINE CLOSURE
  • 12.2 EXISTING SEA GUIDANCE/GUIDELINES FOR RETIREMENT OF COAL-FIRED POWER STATIONS AND CLOSURES OF COAL MINE AND SUPPLY CHAIN
  • 12.3 COAL-FIRED POWER STATIONS: INSTALLED CAPACITY
  • 12.4 BACKGROUND TO COAL ENERGY GENERATION
  • 12.5 ENVIRONMENTAL ISSUES OF OPERATIONAL COAL-FIRED POWER PLANTS
  • 12.6 ISSUES ASSOCIATED WITH THE RETIREMENT OF COAL-FIRED POWER PLANTS
  • 12.7 STRATEGIC ENVIRONMENTAL ASSESSMENT CONSIDERATIONS FOR COAL-FIRED POWER PLANT RETIREMENT

CHAPTER 12: EXECUTIVE SUMMARY

What are the issues in moving away from coal in the energy transition?
Environmental issues of coal such as air and water pollution, waste generation, and land contamination are well known. Coal plants are major polluters, releasing harmful gases like sulfur dioxide and mercury into the air and water. While closing them reduces pollution, there are still concerns about leftover waste, contaminated land, and water pollution from coal ash that need to be handled properly.

The closure of coal plants also affects people and communities that rely on them for jobs and income. When these plants shut down, many workers can lose their jobs, and local economies that depend on the coal industry can suffer. This is especially hard on communities where coal plants are a central part of life. However, with careful planning, old coal plant sites can be turned into new projects, like solar or wind farms, which can create new jobs and opportunities for these communities. Other potential socio-economic impacts are detailed like health risks and the effects on local communities, including vulnerable groups and Indigenous populations.

How can SEA help in the transition away from the use of coal for power generation? 
Strategic Environmental Assessment (SEA) is essential for ensuring that the implementation of policies, plans, and programs (PPPs) concerned with the energy transition and closing coal-fired plants and coal mines is managed responsibly, mitigating negative impacts and maximizing potential benefits for affected communities and the environment.

SEA makes sure that everyone involved—workers, local residents, and businesses—are part of the policy development, planning and decision-making processes early on. This helps address concerns, avoid conflicts, and ensure the transition away from coal is fair. By focusing on how to protect the environment, avoid or minimize negative social consequences and maximize benefits and opportunities, SEA helps make the shift to cleaner energy smooth and sustainable for everyone.